Note 18. Segment Information

The Company routinely evaluates whether its operating and reportable segments continue to reflect the way the CODM evaluates the business. The determination is based on: (1) how the Company’s CODM evaluates the performance of the business, including resource allocation decisions, and (2) whether discrete financial information for each operating segment is available. The Company considers its Chief Executive Officer to be its CODM.

The Connections segment is the only operating segment which meets the criteria to be classified as a reportable segment. The Connections reportable segment includes all of Emerald’s trade shows and other live events. The other two operating segments, which provide diverse media services and e-commerce software solutions, do not meet the quantitative thresholds of a reportable segment and did not meet the aggregation criteria set forth in Accounting Standards Codification 280 (“ASC 280”), Segment Reporting, and as such are referred to as “All Other.”

Operating segment performance is evaluated by the Company’s CODM based on Adjusted EBITDA, defined as EBITDA exclusive of general corporate expenses, stock-based compensation expense, impairments and other items. These adjustments are primarily related to items that are managed on a consolidated basis at the corporate level. The exclusion of such charges from each segment is consistent with how the CODM evaluates segment performance. The CODM considers budget-to-actual variances and year-over-year growth on a monthly basis when assessing segment performance and making decisions about allocating resources to the segments.

The following table presents a reconciliation of reportable segment revenues, other income, and Adjusted EBITDA to net income (loss) before income taxes:


	Years Ended December 31,
(in millions)	2024			2023			2022
Revenues
Connections Segment	$	355.1		$	340.2		$	282.6
All Other Category		43.7			42.6			43.3
Total revenues	$	398.8		$	382.8		$	325.9

Other income, net
Connections Segment	$	1.5		$	2.8		$	34.2
Non-segment related(1)		—			—			148.6
Total other income, net	$	1.5		$	2.8		$	182.8

Connections Segment expenses
Cost of Revenues	$	136.0		$	127.4		$	106.9
Selling, general and administrative		78.3			78.8			76.9
Total expenses	$	214.3		$	206.2		$	183.8

Adjusted EBITDA
Connections Segment	$	142.3		$	136.8		$	133.0
Segment Adjusted EBITDA	$	142.3		$	136.8		$	133.0

All Other Category Adjusted EBITDA	$	6.2		$	3.6		$	0.2
Other Income, net(1)		—			—			148.6
General corporate and other expenses(2)		(46.8	)		(42.6	)		(42.2	)
Interest expense, net		(39.3	)		(35.1	)		(21.8	)
Loss on extinguishment of debt		—			(2.3	)		—
Goodwill impairment charge		—			—			(6.3	)
Intangible asset impairment charge		(7.3	)		—			(1.6	)
Depreciation and amortization expense		(28.3	)		(45.0	)		(59.5	)
Stock-based compensation expense		(5.8	)		(7.8	)		(5.8	)
Deferred revenue adjustment		—			—			(0.6	)
Other items(3)		(13.5	)		(10.5	)		14.0
Income (loss) before income taxes	$	7.5		$	(2.9	)	$	158.0

(1)

On August 3, 2022, the Company reached an agreement for a one-time settlement of outstanding insurance litigation relating to event cancellation insurance for proceeds of $148.6 million. The one-time settlement payment was not specifically attributable to any of the Company’s outstanding event cancellation insurance claims and therefore was not recorded at the segment level. The other income, net related to this one-time settlement is not indicative of any one segment’s performance and is not included in the measure of segment profit and loss analyzed by the CODM on a regular basis.

(2)

General corporate and other expenses are primarily related to corporate level expenditures.

(3)

Other items for the year ended December 31, 2024 included: (i) $1.2 million in gains related to the remeasurement of contingent consideration; (ii) $8.3 million in acquisition-related integration and restructuring-related transition costs, including a one-time severance expense of $3.7 million; (iii) $3.4 million in acquisition-related transaction costs and (iv) $3.0 million in non-recurring legal, audit and consulting fees. Other items for the year ended December 31, 2023 included: (i) $2.3 million in gains related to the remeasurement of contingent consideration; (ii) $6.1 million in acquisition-related integration and restructuring-related transition costs, including a one-time severance expense of $1.5 million; (iii) $2.6 million in acquisition-related transaction costs and (iv) $4.1 million in non-recurring legal, audit and consulting fees. Other items for the year ended December 31, 2022 included: (i) $33.3 million in gains related to the remeasurement of contingent consideration; (ii) $6.1 million in restructuring-related transition costs, including $3.0 million in non-cash lease abandonment charges; (iii) $3.6 million in transaction costs in connection with certain acquisition transactions; (iv) $1.7 million in non-recurring legal, audit and consulting fees and (v) $7.9 million in insurance settlement related expenses.

The following table presents reportable and non-reportable segment cost of revenues and selling, general and administrative expenses:


	Years Ended December 31,
	2024		2023		2022
	(dollars in millions)
Cost of revenues
Connections Segment	$	136.0	$	127.4	$	106.9
All Other Category		10.8		9.6		9.5
Other items(1)		0.7		0.6		0.1
Total cost of revenues	$	147.5	$	137.6	$	116.5

Selling, general and administrative expenses
Connections Segment	$	78.3	$	78.8	$	76.9
All Other Category		26.7		29.4		33.6
Corporate		46.8		42.6		42.2
Other items(1)		18.6		17.5		(7.7	)
Total selling, general and administrative expenses	$	170.4	$	168.3	$	145.0

(1)

Other items included in cost of revenues and selling, general and administrative expenses relate to one-time adjustments that are considered to not be indicative of ongoing segment operative performance.

The Company’s CODM does not receive information with a measure of total assets or capital expenditures for each operating segment as this information is not used for the evaluation of operating segment performance as the Company’s operations are not capital intensive. Capital expenditure information is provided to the CODM on a consolidated basis. Therefore, the Company has not provided asset and capital expenditure information by reportable segment. For the years ended December 31, 2024, 2023 and 2022, substantially all revenues were derived from transactions in the United States.

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Emerald Holding, Inc. Segments Disclosure

About Segments Disclosures

Other Available Disclosures